S Co$.$ is completely liquidated pursuant to Code $332$ as a parent$/$subsidiary liquidation. S Co$.$ distributes its assets as follows:

$\backslash$table$[[$TO$,$AMOUNT,$\backslash$table$[[$SHAREHOLDER$\text{'}$S S CO$.],[$STOCK BASIS$]]],[\backslash$table$[[$P$],[$Co$.]],\backslash$table$[[$Inventory:$]],$$$8,500$